Financial Performance - For the nine months ended September 30, 2022, the company reported total revenue of HKD 60,977,000, a 33.1% increase from HKD 45,807,000 in the same period of 2021[7] - The gross profit for the nine months ended September 30, 2022, was HKD 4,515,000, down 42.5% from HKD 7,851,000 in the previous year[7] - The company incurred a loss before tax of HKD 64,883,000 for the nine months ended September 30, 2022, compared to a loss of HKD 41,474,000 in the same period of 2021, representing a 56.4% increase in losses[7] - The total comprehensive loss for the nine months ended September 30, 2022, was HKD 64,354,000, compared to HKD 40,947,000 in the same period of 2021, indicating a 57.0% increase in total losses[9] - The company reported a basic and diluted loss per share of HKD 9.71 for the nine months ended September 30, 2022, compared to HKD 6.97 in the same period of 2021[9] - The company recognized other income of HKD 3,394,000 for the nine months ended September 30, 2022, an increase from HKD 2,405,000 in the same period of 2021[7] - Employee costs for the nine months ended September 30, 2022, totaled HKD 57,955,000, an increase of 47.9% from HKD 39,146,000 in the same period of 2021[30] - The group reported a pre-tax loss for the nine months ended September 30, 2022, with total costs including employee costs and depreciation amounting to HKD 22,700,000[30] - The group’s total other income for the nine months ended September 30, 2022, was HKD 3,394,000, compared to HKD 2,405,000 in the same period of 2021[24] - The company incurred a loss of approximately HKD 635,000 from the sale of its subsidiary, Tian Gao Translation Company, for a nominal consideration of HKD 1[44] - The total loss and comprehensive expenses for the period amounted to approximately HKD 64,400,000, compared to HKD 40,900,000 in the previous year[89] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2022, were HKD 659,000, significantly higher than HKD 302,000 in the previous year, reflecting a 118.5% increase[7] - The company’s administrative and other operating expenses rose to HKD 68,008,000 for the nine months ended September 30, 2022, compared to HKD 48,945,000 in the same period of 2021, marking a 38.9% increase[7] - The company’s financing costs increased to HKD 2,039,000 for the nine months ended September 30, 2022, compared to HKD 858,000 in the same period of 2021, representing a 137.5% increase[7] - The interest expense on lease liabilities for the three months ended September 30, 2022, was HKD 738,000, compared to HKD 230,000 in the same period of 2021[26] - Financing costs increased by approximately 122.2% to about HKD 2,000,000, attributed to new office lease liabilities[86] Revenue Streams - The group’s revenue for the three months ended September 30, 2022, was HKD 23,483,000, an increase of 94.1% compared to HKD 12,090,000 for the same period in 2021[21] - The electric vehicle charging business generated revenue of HKD 10,287,000 for the three months ended September 30, 2022, compared to HKD 993,000 in the same period of 2021, marking a significant increase[22] - Sales from electric vehicle charging systems increased by approximately HKD 16,000,000, contributing to the overall revenue growth[65] - The revenue from the electric vehicle charging systems reached approximately HKD 19,700,000, a 4.3 times increase compared to HKD 3,700,000 in the same period last year[71] - The commercial printing services revenue decreased by approximately 16.2% to about HKD 22,300,000 due to reduced sales orders from existing clients[67] - Financial printing services revenue increased by approximately 20.1% to about HKD 16,700,000, driven by an increase in the number of clients[67] Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[7] - The company has signed exclusive electric vehicle charging projects in 23 residential parking lots in Hong Kong, covering over 8,000 parking spaces as of September 30, 2022[52] - The company received over 280 applications for the EHSS project, covering more than 45,000 parking spaces, and expects to continue receiving EHSS projects in the coming months[51] - The company launched Cornerstone GO, a comprehensive technology platform for electric vehicle owners, charging operators, and marketers, with over 70 charging stations currently and plans to expand to over 100 by the end of the year[54] - The company expanded its Southeast Asia operations to Thailand, Malaysia, and Indonesia, establishing a joint venture with Zigma EV Power Company Limited in October 2022[55] - The company was selected as a partner for Link REIT's electric vehicle charging program, providing charging stations at 33 out of 113 parking lots in Hong Kong[55] - The company is exploring potential acquisition targets in Southeast Asia to capitalize on growth opportunities[59] - The company aims to achieve carbon neutrality by 2050, aligning with the Hong Kong government's roadmap for electric vehicle adoption[56] - The company is committed to promoting low-carbon lifestyles and reducing carbon emissions through green transportation initiatives[56] Financing Activities - The company has entered into a green financing agreement of HKD 150,000,000 to support financing payments related to EHSS projects[51] - The company successfully placed a total of 39,520,000 shares at a price of HKD 0.62 per share, raising approximately HKD 24,500,000, with a net amount of HKD 23,300,000 allocated primarily for electric vehicle charging business development[95] - 80% of the net proceeds from the placement will be used for the development of the electric vehicle charging business, while 10% will support the commercial and financial printing business operations, and the remaining 10% will be for general working capital[95] - The company issued 45,316,000 subscription shares at HKD 0.62 per share to creditors, with the proceeds of approximately HKD 28,100,000 utilized for operating expenses related to the electric vehicle charging business[98] - The second subscription agreement resulted in the issuance of 32,320,000 new ordinary shares at a subscription price of HKD 0.62 per share, raising approximately HKD 20,000,000, with a net amount of HKD 19,500,000 fully utilized by September 30, 2022[100][101] - The net proceeds from the second subscription were allocated approximately HKD 13,500,000 for electric vehicle charging business development and HKD 6,000,000 for general working capital[101] - The company entered into a green financing agreement for HKD 150,000,000, with an annual interest rate of 10% for each loan under this financing[104] - A supplementary agreement was established to indefinitely suspend the issuance and subscription of certain warrants, with the interest rate for green loans set to increase to 20% after 15 months from the date of the supplementary agreement[106] - The company has entered into a subscription agreement for the issuance of 20,000,000 new ordinary shares at a subscription price of HKD 0.62 per share, with expected net proceeds of approximately HKD 12,200,000 for operational and general corporate purposes[108] Corporate Governance - The company does not recommend the payment of an interim dividend for the nine months ended September 30, 2022[47] - The board of directors does not recommend the payment of an interim dividend for the period[110] - The company has complied with all applicable corporate governance codes as per GEM listing rules during the period[112] - The company’s directors have confirmed compliance with the trading standards from January 1, 2022, to the report date[113] - The company has not established any arrangements for directors to profit from acquiring shares or debt securities during the period[116] Shareholder Information - As of September 30, 2022, the company’s major shareholders include Mr. Wu Jianwei with a 35.40% stake and Mr. Liang Zihao with a 33.97% stake[120] - As of September 30, 2022, Global Fortune holds 235,603,225 shares, representing 32.10% of the issued share capital[126] - Tanner Enterprises owns 98,392,000 shares, accounting for 13.41% of the issued share capital[126] - Glorytwin possesses 81,000,000 shares, which is 11.04% of the issued share capital[126]

Electric Vehicle Charging Business - The electric vehicle charging business has expanded its service points across multiple residential and commercial areas since acquiring Cornerstone Electric Vehicle Charging Services Limited in August 2020[12]. - The government aims to install at least 150,000 electric vehicle charging points in private residential and commercial buildings by 2025, with a funding plan increased to HKD 3.5 billion due to high demand[13]. - As of June 30, 2022, Cornerstone has received over 273 applications covering no less than 115,000 parking spaces under the EV charging funding plan[13]. - Cornerstone has signed exclusive electric vehicle charging projects in 15 residential parking lots, totaling over 7,800 parking spaces[15]. - The company has expanded its public charging network to 16 locations, including popular destinations, and plans to continue this expansion in the coming months[15]. - Cornerstone provides a one-stop electric vehicle charging solution to partners, implementing advanced license plate recognition systems and contactless payment experiences[15]. - The company supports Kowloon Bus in launching a new generation of electric buses, installing 200 kWh fast charging infrastructure at five depots[15]. - A green financing agreement worth HKD 150 million has been established to support payments for projects awarded under the EV charging funding plan[13]. - The Hong Kong government allocated HKD 120 million to increase the number of public EV chargers from 1,100 at the end of 2020 to 1,800 by 2022, with a target of at least 5,000 by 2025[17]. - The company aims to strengthen partnerships with six leading EV brands from Europe, Korea, Japan, and China to enhance charging solutions[17]. - Revenue from the electric vehicle charging business reached HKD 10,278,000 for the first half of 2022, compared to HKD 2,996,000 in the same period of 2021, marking a significant increase of approximately 242.5%[129]. - The company plans to continue expanding its electric vehicle charging solutions and services to capture growing market demand[164]. Financial Performance - Revenue for the six months ended June 30, 2022, increased by approximately 11.3% to HKD 37.5 million from HKD 33.7 million in the same period last year, primarily driven by a HKD 6.9 million increase in EV charging system sales[25]. - The company recorded maintenance service revenue of approximately HKD 160,000 from government projects, a new revenue stream compared to the previous year[33]. - The revenue from financial printing services increased by approximately 8.7% to HKD 11.3 million, driven by an increase in the number of clients[28]. - The revenue from commercial printing services decreased by approximately 20.8% to HKD 15.2 million, primarily due to a reduction in sales orders from existing clients[27]. - Total revenue for the six months ended June 30, 2022, was HKD 37,494,000, a decrease from HKD 33,717,000 for the same period in 2021[39]. - Gross profit decreased by approximately 65.3% from HKD 7,500,000 to HKD 2,609,000, with a gross margin decline from 22.4% to 7.0%[42]. - Other income increased by 2.2 times to HKD 1,600,000, primarily due to government subsidies of HKD 1,000,000 recognized during the period[43]. - Administrative and other operating expenses rose by approximately 46.2% to HKD 48,100,000, mainly due to the expansion of the electric vehicle charging business[46]. - Research and development expenses increased from HKD 241,000 to HKD 623,000 during the period[47]. - Financing costs rose by approximately 116.7% to HKD 1,300,000, attributed to increased lease liabilities from new office leases[48]. - The company recorded a total loss of approximately HKD 47,100,000 for the period, compared to HKD 26,500,000 in the previous year[51]. - The net loss attributable to the owners of the company for the six months was HKD 46,889,000, compared to a loss of HKD 26,361,000 in the prior year, reflecting an increase of 78%[100]. - The company reported a basic and diluted loss per share of HKD 7.52 for the six months, compared to HKD 4.60 in the same period last year[100]. - The company reported a total loss of HKD 47,065,000 for the first half of 2022, compared to a loss of HKD 26,504,000 in the same period of 2021, indicating a deterioration in financial performance[139]. - The group reported a total comprehensive loss of HKD 138,671,000 for the six months ended June 30, 2022, compared to a loss of HKD 46,889,000 for the same period in 2021[115]. Shareholder Information - The company issued a total of 45,316,000 subscription shares at a price of HKD 0.62 per share, raising approximately HKD 28,100,000 to cover debts[62]. - The second subscription agreement involved the issuance of 32,320,000 new ordinary shares at the same price of HKD 0.62 per share, with a total net proceeds of approximately HKD 19,500,000[64]. - As of June 30, 2022, HKD 8,105,000 of the net proceeds from the second subscription was utilized for the development of the electric vehicle charging business[67]. - The company plans to use the remaining net proceeds of HKD 5,395,000 for electric vehicle charging business development by June 30, 2023[67]. - The company’s major shareholder, Global Fortune, holds 235,603,225 shares, representing 33.58% of the issued share capital[89]. - The company’s director, Mr. Wu, holds a total of 259,795,225 shares, accounting for 37.02% of the issued share capital[83]. - The company’s director, Mr. Liang, holds 249,311,225 shares, which is 35.53% of the issued share capital[83]. - The company’s director, Mr. Li, has a total of 104,304,613 shares, representing 14.86% of the issued share capital[83]. - The company’s director, Mr. Liu, holds 30,302,703 shares, which is 4.32% of the issued share capital[83]. - The company’s director, Mr. Pan, holds 27,096,000 shares, accounting for 3.86% of the issued share capital[83]. - The company’s director, Mr. Ye, holds 5,997,905 shares, representing 0.85% of the issued share capital[83]. - The company’s director, Mr. Wu, directly holds 24,192,000 shares in addition to his controlled corporation interests[85]. Operational Highlights - The company established a joint venture in Cambodia for EV business development, marking a milestone in its overseas expansion strategy[20]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period, except for disclosed placements[80]. - The company’s directors and senior management do not have any other interests or conflicts of interest in competing businesses during the reporting period[93]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on its financial performance[122]. - The company is focusing on market expansion strategies, with a target to increase user engagement by 20% in the next fiscal year[181].

Financial Performance - Revenue for the first quarter of 2022 was HKD 11,716,000, a decrease of 18.6% compared to HKD 14,389,000 in the same period last year[10] - Gross loss for the quarter was HKD 1,768,000, compared to a gross profit of HKD 2,790,000 in the previous year[10] - The company reported a loss before tax of HKD 21,135,000, which is a significant increase from the loss of HKD 12,370,000 in the same quarter of the previous year[10] - Total comprehensive loss for the period amounted to HKD 20,917,000, compared to HKD 12,336,000 in the prior year[10] - Basic and diluted loss per share was HKD 3.40, compared to HKD 2.26 in the same quarter last year[12] - The company reported a loss attributable to owners of HKD 20,648,000 for the three months ended March 31, 2022, compared to a loss of HKD 12,336,000 in the same period of 2021[33] - The total loss and comprehensive expenses for the period amounted to approximately HKD 20,900,000, compared to HKD 12,300,000 in the previous year[79] Revenue Breakdown - The group's revenue for the three months ended March 31, 2022, was HKD 11,716,000, a decrease of 18.6% compared to HKD 14,389,000 for the same period in 2021[24] - The commercial printing services generated revenue of HKD 5,355,000, down 44.5% from HKD 9,651,000 in the previous year[24] - Revenue from financial printing services decreased by approximately 25.0% to about HKD 2,400,000, attributed to a decrease in the number of transactions by client companies[62] - Revenue from electric vehicle charging business increased to approximately HKD 3,576,000 from HKD 626,000, driven by a significant increase in sales of electric vehicle charging systems[64] Expenses and Costs - Research and development expenses for the quarter were HKD 270,000, indicating ongoing investment in innovation[10] - Administrative and other operating expenses increased to HKD 18,162,000 from HKD 14,453,000 year-over-year[10] - The company incurred finance costs of HKD 659,000, up from HKD 351,000 in the previous year[10] - The total employee costs increased to HKD 15,940,000 in 2022 from HKD 12,119,000 in 2021, reflecting a rise of 31.5%[29] - Sales expenses decreased by approximately 28.6% to about HKD 410,000 for the period[73] - Administrative and other operating expenses increased by approximately 25.5% from HKD 14,500,000 to HKD 18,200,000, primarily due to the expansion of the electric vehicle charging business[74] - Financing costs increased by approximately 87.7% from HKD 351,000 to HKD 659,000, mainly due to increased lease liabilities from a new office lease[77] Electric Vehicle Charging Business - The company continues to focus on expanding its services in printing, typesetting, translation, and electric vehicle charging[20] - The electric vehicle charging business reported revenue of HKD 3,576,000, significantly up from HKD 626,000 in the same period last year, marking a growth of 471.4%[24] - The electric vehicle charging business has expanded its service points across various residential and commercial areas since the acquisition of Cornerstone Electric Vehicle Charging Services Limited in August 2020[40] - The company is developing a smart parking system to monitor the operation of 1,800 electric vehicle chargers across multiple government parking lots, with a mobile app for users to find nearby charging stations[46] - The company has partnered with Golden Cambodia Century Limited to establish a joint venture for electric vehicle charging business development in Cambodia, with the first phase including ten charging stations at major shopping malls and gas stations[48] - The company is set to begin the installation of electric vehicle charging infrastructure for approximately 302 parking spaces as part of the EV Charging Easy Subsidy Scheme project, expected to start in May 2022[51] Government Initiatives and Support - The government of Hong Kong is committed to achieving carbon neutrality by 2050, which includes measures to promote electric vehicles and charging networks[40] - The government aims to install at least 150,000 electric vehicle charging points in private residential and commercial buildings by 2025, with a funding increase from HKD 2 billion to HKD 3.5 billion for the EV Charging Easy Subsidy Scheme[41] - As of March 31, 2022, over 273 applications have been received under the EV Charging Easy Subsidy Scheme, covering at least 115,000 parking spaces, nearly double the original target of 60,000[41] - The government has allocated HKD 120 million for a three-year plan to increase the number of charging stations in government parking lots from 1,100 to 1,800 by the end of 2022, with a long-term goal of at least 5,000 chargers by 2025[44] Corporate Governance - The company has established an audit committee to oversee financial reporting and compliance with regulations[108] - The audit committee consists of three independent non-executive directors, ensuring governance and oversight[108] - No directors or their close associates are engaged in any competing business activities during the reporting period[107] - The company has complied with applicable accounting standards in preparing its financial statements[110]

Electric Vehicle Charging Business - The electric vehicle (EV) charging business generated approximately HKD 6,800,000 in revenue during the review year[13]. - The company successfully secured multiple projects for EV charging facilities in public and private parking lots across Hong Kong[13]. - Exclusive agreements were established for EV charging projects in various residential areas, covering over 5,000 parking spaces to expand the charging network[13]. - The global sales of electric vehicles accelerated during the pandemic, creating a favorable environment for the EV charging industry[13]. - The company acquired the EV charging business in August 2020 to ensure sustainable development and profitability growth[13]. - The company is positioned as a leading service provider in the EV charging market in Hong Kong, capitalizing on the rapid development of electric vehicles[13]. - The company is actively investing resources into the EV charging business to drive its growth amid challenging conditions[13]. - The global focus on carbon neutrality has led to increased government investments in EV infrastructure, including charging stations and smart grids[13]. - The company aims to leverage the opportunities presented by the growing demand for electric vehicles and related infrastructure[13]. - The company has successfully expanded its business into Cambodia, with the first phase involving the installation of chargers at 10 major shopping malls and gas stations[17]. - The company has secured multiple EV charging projects in high-end residential properties in Hong Kong, covering approximately 5,800 parking spaces[27]. - The company has established exclusive agreements for EV charging projects in seven residential areas in Hong Kong[27]. - The company is focusing on "destination charging" for home use and "opportunity charging" for users on the go, with a 30 kW DC charger installed at a shopping mall providing 100 km of range after 30 minutes of charging[30]. - The company is preparing to support the government in charging fee arrangements and hardware/software upgrades for public charging facilities[32]. - The company aims to enhance its software capabilities and quality technology to maintain a competitive edge in the EV charging market[17]. - The company is developing a smart parking system to monitor 1,800 electric vehicle chargers across multiple government parking lots, with completion expected in Q2 2022[33]. - The company is actively participating in government electric vehicle charging projects and has successfully secured multiple contracts for charging facilities[36]. - The company aims to expand into the Southeast Asian electric vehicle charging market, leveraging its experience in Hong Kong[36]. - Revenue from electric vehicle charging services includes direct sales of charging systems and rental income from public and private parking chargers[38]. Financial Performance - The group's revenue increased by approximately 34.5% from about HKD 40,900,000 for the nine months ended December 31, 2020, to about HKD 55,000,000 for the year ended December 31, 2021, primarily due to an increase in sales orders[41]. - Revenue from commercial printing services rose approximately 62.3% from about HKD 19,000,000 for the nine months ended December 31, 2020, to about HKD 30,900,000 for the year ended December 31, 2021, driven by increased sales orders from existing customers[43]. - Revenue from financial printing services decreased by approximately 21.6% from about HKD 20,200,000 for the nine months ended December 31, 2020, to about HKD 15,800,000 for the year ended December 31, 2021, due to a reduction in client transactions and IPO-related work[44]. - Revenue from electric vehicle charging systems reached approximately HKD 6,400,000 for the year ended December 31, 2021, compared to about HKD 500,000 for the nine months ended December 31, 2020[46]. - The gross profit decreased by approximately 13.3% from about HKD 8,000,000 for the nine months ended December 31, 2020, to about HKD 7,000,000 for the year ended December 31, 2021, with a gross margin decline from approximately 19.6% to 12.7%[54]. - Administrative and operating expenses increased by approximately 58.8% from about HKD 41,900,000 for the nine months ended December 31, 2020, to about HKD 66,600,000 for the year ended December 31, 2021, mainly due to increased employee costs from the expansion of the electric vehicle charging business[58]. - Research and development expenses increased by approximately 12.6% from about HKD 1,500,000 for the nine months ended December 31, 2020, to about HKD 1,700,000 for the year ended December 31, 2021[59]. - Financing costs rose by approximately 7.6% from about HKD 1,100,000 for the nine months ended December 31, 2020, to about HKD 1,200,000 for the year ended December 31, 2021[60]. - Other income decreased by approximately 46.2% from about HKD 6,700,000 for the nine months ended December 31, 2020, to about HKD 3,600,000 for the year ended December 31, 2021, primarily due to a reduction in recognized government subsidies[56]. - The group recorded a total loss and comprehensive expenses of approximately HKD 62,000,000 for the year ended December 31, 2021, compared to HKD 30,500,000 for the nine months ended December 31, 2020[63]. - As of December 31, 2021, the group's cash and bank balances were approximately HKD 16,600,000, down from HKD 33,200,000 as of December 31, 2020[65]. - The debt-to-equity ratio as of December 31, 2021, was approximately 108.0%, compared to 104.6% as of December 31, 2020[63]. - The capital-to-debt ratio increased to approximately 135.0% as of December 31, 2021, from 56.9% as of December 31, 2020, due to an increase in loans from shareholders and lease liabilities[63]. - The group did not have any significant investments or capital assets planned as of December 31, 2021[73]. - The net proceeds from the first placement of shares amounted to approximately HKD 19,400,000, intended for the development of electric vehicle charging business and operational funding[76]. - The group’s operating cash flow was primarily funded by revenue generated from its business operations, available cash, and bank borrowings[65]. - The group faced minimal foreign exchange risk as most transactions, assets, and liabilities were denominated in HKD[67]. - The group had no significant contingent liabilities as of December 31, 2021[69]. - There were no major acquisitions or disposals of subsidiaries or associates during the year ended December 31, 2021[74]. - The company completed the first subscription agreement on March 10, 2021, issuing 69,625,000 new ordinary shares at a subscription price of HKD 0.40 per share, raising approximately HKD 27,900,000 in total proceeds[79]. - The net proceeds from the first subscription amount to approximately HKD 27,800,000, intended for the development of electric vehicle charging business, maintenance of commercial and financial printing operations, and general corporate purposes[79]. - The second subscription agreement was completed on December 6, 2021, issuing 8,000,000 new ordinary shares at a subscription price of HKD 0.62 per share, raising approximately HKD 5,000,000 in total proceeds[80]. - The net proceeds from the second subscription amount to approximately HKD 4,900,000, which will be used for general working capital of the group[80]. - The total gross and net proceeds from the first and second subscriptions amount to approximately HKD 52,700,000 and HKD 52,100,000, respectively[85]. - As of December 31, 2021, the net proceeds of HKD 52,100,000 have been fully utilized, with approximately HKD 33,000,000 allocated to the development of electric vehicle charging business[85]. Management and Governance - The company is led by CEO Ye Zhaokang, who has over 10 years of management experience and previously held executive roles in various organizations[98]. - CFO Zhang Tingbang has over 15 years of experience in financial operations and is a senior member of both the Institute of Chartered Accountants in England and Wales and the Hong Kong Institute of Certified Public Accountants[99]. - The company has a strong management team with diverse backgrounds in various industries, including electric vehicle charging and retail[101][103][105]. - The company is focused on expanding its electric vehicle charging business, with a dedicated team for international market development and technology advancement[103]. - The company has established a solid governance framework in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange[111]. - Mr. Ye Zhaokang was appointed as the CEO on November 1, 2021, while Mr. Liang Zihau stepped down from the CEO position but remains as Co-Chairman[113]. - The board of directors consists of experienced individuals ensuring a balance of power and authority, with Mr. Liang primarily responsible for overall leadership and business development[112]. - The company has adopted trading standards in compliance with GEM Listing Rules, confirming that all directors have adhered to these standards since January 1, 2021[117]. - The board has established three special committees (Audit, Remuneration, and Nomination) to oversee specific aspects of the company's affairs[125]. - The board of directors is responsible for ensuring the company's continuous operation and managing risks associated with its business[120]. - As of December 31, 2021, Mr. Liang attended 11 out of 11 board meetings, demonstrating active participation in governance[123]. - The company has a policy in place for the re-election of directors, ensuring that one-third of the board retires at each annual general meeting[114]. - The board has reviewed and discussed the effectiveness of corporate governance policies, expressing satisfaction with their implementation[120]. - The company has committed to maintaining compliance with GEM Listing Rules regarding independent non-executive directors[119]. - The board's main duties include approving strategic plans, major operational projects, and significant investment decisions[120]. - The audit committee reviewed and recommended the approval of the audited consolidated financial statements for the year ended December 31, 2021[128]. - The audit committee held five meetings from January 1, 2021, to the date of the report[127]. - The remuneration committee reviewed the remuneration and performance of directors and senior management, holding one meeting during the reporting period[130]. - The nomination committee assessed the independence of independent non-executive directors and reviewed the board's structure, holding one meeting during the reporting period[131]. - The company adopted a board diversity policy based on various criteria, including gender, age, and professional experience[134]. - Independent non-executive directors have a fixed term of three years, with the possibility of renewal[135]. - The company provided formal training for newly appointed directors to ensure understanding of operations and responsibilities[137]. - Directors participated in training sessions and reviewed relevant materials regarding their duties and responsibilities[138]. - The audit committee ensured compliance with applicable accounting standards and GEM listing rules[128]. - The remuneration committee established a transparent process for determining the remuneration of directors and senior management[130]. - The remuneration for directors and senior management ranges from 0 to 1,000,000 HKD for 12 individuals, 1,000,001 to 1,500,000 HKD for 3 individuals, and 2,000,001 to 2,500,000 HKD for 1 individual[141]. - The company paid 800,000 HKD to its auditor, Deloitte, for audit services for the year ended December 31, 2021[146]. - The company has not established an internal audit function as of December 31, 2021, but will continue to review the need for such a function annually[150]. - The company has implemented risk management procedures, including risk identification, assessment, and mitigation measures, to ensure the protection of shareholder investments[149]. - The board of directors is responsible for overseeing the internal control and risk management systems, which are reviewed at least annually for effectiveness[147]. - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[156]. - The company has established multiple channels for communication with shareholders, including its website and printed corporate communications[157]. - The remuneration committee meets at least once a year to discuss remuneration matters, including the compensation of directors and senior management[142]. - The company has a clear governance structure and has delegated risk management responsibilities to the audit committee[147]. - The company ensures confidentiality of sensitive information through strict compliance measures and limited access to insider information[152]. Legal and Regulatory Compliance - The group did not purchase, sell, or redeem any listed securities during the year ended December 31, 2021[199]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2021[200]. - The company issued a total of 69,625,000 subscription shares at a price of HKD 0.40 per share on March 10, 2021, to related parties[196]. - A total of 45,316,000 subscription shares were issued at a price of HKD 0.62 per share as part of a debt settlement agreement with creditors[198]. - The company has no significant transactions or arrangements involving directors or related entities for the year ended December 31, 2021[193]. - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[191]. - The company has not established any stock-linked agreements that would lead to the issuance of shares during the year ended December 31, 2021[194]. - The company’s capital structure changes and details are available in the financial statements notes[185]. - The group has not experienced any significant legal or regulatory violations impacting its business as of December 31, 2021[171]. - The company emphasizes environmental protection and compliance with relevant laws and regulations in its operations[171].

() Cornerstone Technologies Holdings Limited 基石科技控股有限公司 ( 於開曼群島註冊成立之有限公司) 第三季度報告 2021 混合產品 FSC FSC" C007234 www.fsc.org 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小型公司提 供一個上市之市場。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審 慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較在聯交所主板買 賣之證券承受較大之市場波動風險，同時無法保證在 GEM買賣之證券會有高流通量之 市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關基石科技控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資料 共同及 ...

Electric Vehicle Charging Business - Cornerstone Technologies Holdings Limited has launched its electric vehicle charging business through the acquisition of Cornerstone Electric Vehicle Charging Services Limited in August 2020[20]. - The company has established a competitive market position as one of the main electric vehicle charging service providers in Hong Kong, recognized by a renowned Japanese automobile manufacturer as an authorized electric vehicle charger supplier[20]. - As of June 30, 2021, the company has secured multiple electric vehicle charging projects in high-end residential areas in Hong Kong, leveraging attractive charging fee plans[22]. - The Hong Kong government aims to install at least 150,000 electric vehicle charging points in private residential and commercial buildings by 2025, with a funding cap of HKD 2 billion for the EV Charging at Home Subsidy Scheme[22]. - The EV Charging at Home Subsidy Scheme has received applications covering no less than 74,000 parking spaces, reaching the funding limit by May 2021[22]. - In April 2021, the company’s new electric vehicle charger, Chargic, won the Green Good Design Award for its use of 30-50% recycled polycarbonate[26]. - The company has installed a 30 kW DC charger at the Shek Yam Plaza, allowing electric vehicles to travel 100 kilometers after a 30-minute charge[26]. - Cornerstone Technologies Holdings Limited has entered into a cooperation agreement with Hyundai Motor Hong Kong Limited for cross-promotion of its electric vehicle chargers and Hyundai's Kona electric vehicle[23]. - The company’s R&D department, located in Hong Kong, is supported by a team with extensive experience in mechanical and electrical engineering, driving innovation and maintaining competitive advantages[20]. - The company is focused on providing "destination charging" solutions for users to charge their electric vehicles at home, while also offering "opportunity charging" for users on the go[26]. - The company is actively supporting the government's EV charging initiatives and has completed the installation of DC charging facilities at a designated bus depot, capable of delivering up to 200 kW[29]. - The company plans to complete the development of a smart parking system by the first quarter of 2022, which will monitor the operation of 1,800 EV chargers[29]. - The EV market share of new private car registrations increased from 12.4% in 2020 to 18.4% in the first five months of 2021, indicating a growing demand for electric vehicles[33]. - The company aims to innovate continuously to support the rapidly expanding electric vehicle charging market[33]. - Total revenue from the electric vehicle charging business reached HKD 2,996 thousand for the six months ended June 30, 2021, compared to HKD 1,617 thousand for the same period in 2020, representing an increase of 85.0%[182]. Financial Performance - Total revenue for the six months ended June 30, 2021, increased by approximately 21.5% to HKD 33.7 million from HKD 27.7 million in the same period of 2020[44][45]. - Revenue from commercial printing services rose by approximately 43.2% to HKD 19.2 million, driven by increased sales orders from existing customers[46]. - Revenue from financial printing services decreased by approximately 18.2% to HKD 10.4 million, reflecting a decline in demand[48]. - Revenue from other services fell by approximately 31.0% to HKD 1.1 million, indicating challenges in this segment[49]. - The company reported revenue of HKD 33,717,000, an increase of 21.5% compared to HKD 27,749,000 for the same period in 2020[147]. - Gross profit for the same period was HKD 7,547,000, representing a significant increase from HKD 3,100,000 in the prior year, marking a gross margin improvement[147]. - The company incurred a loss before tax of HKD 26,847,000 for the six months ended June 30, 2021, compared to a loss of HKD 14,782,000 in the same period of 2020, indicating a worsening financial performance[147]. - The company reported a net loss of HKD 56,779,000 for the six months ended June 30, 2021, compared to a loss of HKD 5,277,000 for the same period in 2020[168]. - The company reported a total comprehensive loss of HKD 14,063,000 for the period[168]. - The company reported a loss of HKD 26,504 thousand for the six months ended June 30, 2021, compared to a loss of HKD 14,169 thousand for the same period in 2020[187]. - The basic and diluted loss per share for the six months ended June 30, 2021, was HKD 4.60, compared to HKD 3.20 for the same period in 2020, reflecting increased losses per share[150]. - The basic loss per share for the six months ended June 30, 2021, was HKD 0.046, compared to HKD 0.032 for the same period in 2020, reflecting a 43.8% increase in loss per share[200]. - The company incurred a net cash used in operating activities of HKD 23,622,000 for the six months ended June 30, 2021, compared to HKD 3,856,000 in the prior year[168]. Operational Efficiency and Investments - The company has upgraded its IT servers and purchased new equipment and software to improve operational efficiency[104]. - The company plans to enhance its financial printing services and has invested in new software and hardware[104]. - The company has committed HKD 20 million to explore sustainable new business opportunities as part of its strategic initiatives[112]. - The company has emphasized the importance of operational efficiency improvements for long-term growth[112]. - The company has hired several sales and operational personnel to support business growth[104]. - The company invested HKD 1,081,000 in property, plant, and equipment during the reporting period[168]. - The company incurred depreciation expenses of HKD 3,270,000 for property, plant, and equipment for the six months ended June 30, 2021, compared to HKD 2,591,000 in 2020, marking a rise of 26.2%[1]. Shareholder Information - The major shareholder, Global Fortune, holds 235,603,225 shares, representing 39.28% of the issued share capital[135]. - The second major shareholder, Guan Shuang Limited, also holds 81,000,000 shares, accounting for 13.50% of the issued share capital[135]. - The total number of shares held by the directors and senior management in the company and its associated corporations includes 30,302,703 shares, which is 5.05% of the issued share capital[124]. - Wu Jianwei, a director, holds 235,603,225 shares, representing 39.28% of the issued share capital[124]. - Liang Zihao, another director, also holds 235,603,225 shares, accounting for 39.28% of the issued share capital[124]. - Liu Wei'en, a director, holds 30,302,703 shares, which is 5.05% of the issued share capital[124]. - Pan Wenyuan, a director, holds 23,872,000 shares, representing 3.98% of the issued share capital[124]. - The company has not disclosed any other individuals or entities holding significant interests in its shares as of June 30, 2021[138]. - The company’s directors and senior management do not have any other interests or short positions in the company’s shares or related securities as of June 30, 2021[133]. Compliance and Governance - The board of directors has confirmed compliance with the GEM Listing Rules regarding securities trading standards since January 1, 2021[119]. - The company has not established any arrangements for directors to profit from acquiring shares or debt securities of the company or any related entities during the reporting period[121]. - The company has maintained adherence to all applicable corporate governance code provisions during the six months ended June 30, 2021[115]. - The company confirmed compliance with non-competition agreements, ensuring no conflicts of interest with its major shareholders[141].

Financial Performance - Revenue for the first quarter of 2021 was HKD 14,389,000, representing a 32.3% increase from HKD 10,899,000 in the same period of 2020[7] - Gross profit for the first quarter of 2021 was HKD 2,790,000, compared to a gross loss of HKD 983,000 in the first quarter of 2020[7] - The company reported a loss before tax of HKD 12,370,000, which is a 41.5% increase from a loss of HKD 8,763,000 in the previous year[7] - Basic and diluted loss per share for the first quarter of 2021 was HKD 2.26, compared to HKD 1.98 in the same period of 2020[7] - The total comprehensive loss for the period was HKD 12,336,000, compared to HKD 8,650,000 in the first quarter of 2020[7] - The group reported a loss of HKD 12,336,000 for the period, compared to a loss of HKD 7,919,000 in the same period last year[22] - The company reported a loss attributable to shareholders of HKD 12,336,000 for the three months ended March 31, 2021, compared to a loss of HKD 8,733,000 for the same period in 2020, representing a year-over-year increase in loss of approximately 41%[37] - The total comprehensive loss for the three months ended March 31, 2021, was approximately HKD 12,300,000, compared to HKD 8,700,000 for the same period in 2020[97] Revenue Breakdown - For the three months ended March 31, 2021, the total revenue was HKD 14,389,000, an increase of 32.5% compared to HKD 10,899,000 for the same period in 2020[17] - The printing business generated revenue of HKD 13,763,000, up from HKD 10,899,000, while the electric vehicle charging business contributed HKD 626,000[23] - Revenue from commercial printing services increased by 60.4% from approximately HKD 6,000,000 to approximately HKD 9,700,000 for the three months ended March 31, 2021[60] - Revenue from financial printing services decreased by 7.0% from approximately HKD 3,400,000 to approximately HKD 3,200,000 for the same period[60] - Total revenue for the printing business increased by approximately 26.3% from HKD 10,900,000 to HKD 13,800,000 for the three months ended March 31, 2021[71] - The electric vehicle charging business generated approximately HKD 578,000 from sales of electric vehicle charging systems and HKD 48,000 from rental income for the three months ended March 31, 2021[71] Cost and Expenses - The cost of services for the printing business was HKD 11,100,000, while the electric vehicle charging business incurred costs of HKD 499,000[23] - Employee costs, including director remuneration, totaled HKD 12,119,000, significantly higher than HKD 7,919,000 in the previous year[32] - Other income for the period was HKD 218,000, a decrease from HKD 892,000 in the prior year[27] - Financing costs amounted to HKD 351,000, slightly lower than HKD 413,000 in the same period last year[28] - The group incurred depreciation expenses of HKD 1,629,000 for property, plant, and equipment, compared to HKD 1,209,000 in the previous year[32] - Administrative and other operating expenses increased by approximately 90.8% from HKD 7,600,000 to HKD 14,500,000, primarily due to additional costs related to equity-settled share-based payments and electric vehicle charging business[92] - Sales expenses decreased from approximately HKD 689,000 to HKD 574,000, a reduction of about 16.7% due to lower salaries[91] Shareholder and Equity Information - The company granted 28,428,000 share options under its share option scheme during the three months ended March 31, 2021, compared to none in the same period of 2020[40] - The fair value of the share options granted was estimated at HKD 8,811,000 using the binomial option pricing model[42] - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2021, consistent with no dividend declared in the same period of 2020[46] - Major shareholder Global Fortune holds 235,603,225 shares, representing 39.28% of the issued share capital[129] - The company’s major shareholders include Guan Shuang Limited and Cai Bei Limited, each holding 81,000,000 shares, representing 13.50% of the issued share capital[129] - As of March 31, 2021, the company’s directors and senior management hold significant interests in the company’s shares and related securities[118] Business Operations and Strategy - The company is primarily engaged in providing printing, typesetting, translation services, and electric vehicle charging business in Hong Kong[13] - The company aims to expand its market presence and enhance its service offerings in the coming quarters[6] - The management is focused on improving operational efficiency and reducing costs to mitigate losses[6] - Future product development and technological advancements are being prioritized to drive growth[6] - The company plans to become a major market participant in Hong Kong's electric vehicle charging sector, aiming for a vision of "zero carbon emissions, fresh air, and smart cities" in the coming years[61] - The company has entered 20 parking lots under the Hong Kong Housing Authority, some equipped with license plate recognition systems to manage parking services more effectively[56] - The company is focused on research and development to enhance competitiveness in maintenance services and battery recycling for electric vehicles[56] Compliance and Governance - The company has adopted trading standards for directors in compliance with GEM Listing Rules, confirming adherence since January 1, 2021[110] - The company has no arrangements for directors to profit from acquiring shares or debt securities of the company or any other corporation during the reporting period[114] - The audit committee has confirmed that the financial statements for the quarter have been prepared in accordance with applicable accounting standards[139] - The company is committed to compliance with all relevant regulations and has established robust internal controls to manage risks effectively[139] Future Outlook - The company has projected a revenue growth of 10% for the next quarter, aiming for HKD 37.4 million[135] - The company is investing HKD 5 million in R&D for new product development, focusing on enhancing user experience and technology integration[135] - Market expansion efforts include entering two new regions, which are expected to contribute an additional HKD 3 million in revenue by Q3 2021[135] - The company has completed a strategic acquisition of a tech startup for HKD 15 million, aimed at bolstering its technological capabilities[135] - The company has maintained a strong cash position with HKD 50 million in cash reserves, providing flexibility for future investments[135]

Electric Vehicle Charging Business - The group acquired an electric vehicle charging business in August 2020, recognizing the importance of carbon neutrality as a global focus since 2016[22]. - The electric vehicle market is thriving, and management's goal is to seize opportunities for further development supported by government policies[25]. - The acquisition of Cornerstone Electric Vehicle Charging Services Limited was completed on August 4, 2020, making it a wholly-owned subsidiary, and its financial performance is consolidated into the group's results[29]. - Cornerstone Electric Vehicle Charging is recognized as a major provider of electric vehicle charging solutions in Hong Kong, having been appointed as a licensed supplier by a renowned Japanese automobile manufacturer[30]. - The group won contracts for the installation of 153 chargers at Kwai Fong and Shek Mei Tsui Municipal Parking Lots, part of a HKD 120 million budget to expand the public charging network[33]. - A total of 94 chargers at Kwai Fong Parking Lot are equipped with a power load management system, maximizing available power supply without increasing electrical load[34]. - The group is expanding its footprint with the construction of an outdoor fast charging station in Mui Wo, Lantau Island, set to open to the public in April 2021[35]. - The group established a large charging station at the border with over 120 chargers to facilitate cross-border commuters[37]. - The group plans to leverage opportunities in the electric vehicle charging business to become a key market player in achieving the vision of "zero carbon emissions, fresh air, and smart city" in Hong Kong[41]. - The company is focused on the continuous development of electric vehicle charging technology, leveraging over 13 years of industry experience[105]. - The company has established a reputation for providing advanced electric vehicle charging products and comprehensive solutions within the industry[105]. - The company has been involved in significant research and development activities, collaborating with government officials and industry stakeholders to promote the electric vehicle charging sector[105]. - The company has a strategic focus on market expansion and technological innovation in the electric vehicle sector[105]. Financial Performance - Revenue from commercial printing services for the reporting period was approximately HKD 19 million, down from HKD 36.1 million for the year ended March 31, 2020[39]. - Revenue from financial printing services for the reporting period was approximately HKD 20.2 million, down from HKD 25 million for the year ended March 31, 2020[39]. - Total revenue from the printing business for the nine months ended December 31, 2020, was HKD 40.3 million, compared to HKD 64.3 million for the year ended March 31, 2020[44]. - The group's revenue for the nine months ended December 31, 2020, was approximately HKD 40,900,000, compared to approximately HKD 64,300,000 for the year ended March 31, 2020, representing a decrease of about 36.5%[45]. - Revenue from commercial printing services for the nine months ended December 31, 2020, was approximately HKD 19,000,000, down from approximately HKD 36,100,000 for the year ended March 31, 2020, indicating a decline of about 47.4%[46]. - Revenue from financial printing services for the nine months ended December 31, 2020, was approximately HKD 20,200,000, compared to approximately HKD 25,000,000 for the year ended March 31, 2020, reflecting a decrease of about 19.6%[48]. - Revenue from other services for the nine months ended December 31, 2020, was approximately HKD 1,100,000, down from approximately HKD 3,200,000 for the year ended March 31, 2020, a decline of about 65.6%[49]. - The company recorded a total comprehensive loss of approximately HKD 30.5 million for the nine months ended December 31, 2020, compared to a loss of approximately HKD 16.3 million for the year ended March 31, 2020[66]. - The loss situation was primarily due to a decrease in customer orders for printing services, driven by increasing environmental concerns and the impact of the COVID-19 pandemic[66]. Management and Governance - The company is committed to corporate governance practices in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange[115]. - The board consists of experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[116]. - The board has established three special committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the company's affairs[127]. - The company has complied with GEM Listing Rules regarding the independence of its non-executive directors[122]. - The board held a total of 8 meetings, with all executive directors attending all meetings[125]. - The board is responsible for ensuring the company's continuous operation and managing risks effectively[123]. - The company has adopted internal guidelines that require board approval for significant operational projects and major investments[123]. - The Audit Committee reviewed and recommended the approval of the audited consolidated financial statements for the nine months ended December 31, 2020, and the interim results for the six months ended September 30, 2020[130]. - The Audit Committee held four meetings from April 1, 2020, to the date of the report, ensuring compliance with applicable accounting standards and GEM listing rules[129]. - The Remuneration Committee reviewed the remuneration policies for directors and senior management, holding three meetings during the reporting period[132]. - The Nomination Committee assessed the independence of independent non-executive directors and reviewed the board's structure, holding three meetings in the reporting period[134]. - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience in the election of board members[135]. - Independent non-executive directors are appointed for a fixed term of three years, with provisions for re-election and independence confirmation[136]. - The company provided formal and comprehensive training for newly appointed directors to ensure understanding of operations and responsibilities[138]. Employee and Talent Management - The group had 149 employees in Hong Kong, an increase from 112 employees as of March 31, 2020[177]. - The group has implemented a stock option plan to attract and retain talent[177]. - The company has made significant progress in hiring operational staff to support business growth[83]. - The company is focused on retaining top industry talent to ensure continued growth and innovation[83]. - The company has hired several experienced sales personnel to strengthen customer relationships and support business growth[83]. Compliance and Risk Management - The company is committed to environmental protection and compliance with relevant laws and regulations[172][173]. - The company has established a risk management system that includes risk identification, assessment, and mitigation measures[149]. - The board confirmed the effectiveness of the internal control and risk management systems as of December 31, 2020[149]. - The company has not established an internal audit function as per the code provisions but will continue to review its necessity annually[150]. - The company’s audit committee has reviewed the internal control system and found it effective and sufficient[149]. Shareholder Relations and Dividends - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[156]. - The board does not recommend the distribution of a final dividend for the nine months ended December 31, 2020[182]. - The group has adopted a dividend policy that allows for cash or stock dividends, subject to board discretion and shareholder approval[180]. - The group has no distributable reserves as of December 31, 2020[185]. Acquisitions and Investments - The company plans to allocate HKD 20,000,000 for exploring sustainable new business opportunities, with HKD 15,000,000 already utilized for the acquisition of an electric vehicle charging business[89]. - There were no major acquisitions or disposals of subsidiaries or associates during the nine months ended December 31, 2020[77]. - The net proceeds from the initial public offering in May 2018 amounted to approximately HKD 41,000,000 after deducting underwriting commissions and related expenses[84]. - As of December 31, 2020, the company had utilized HKD 34,606,000 of the net proceeds, leaving an unutilized balance of HKD 6,394,000[86].

Revenue Performance - Revenue from commercial printing services decreased by approximately 32.9% from HKD 21.9 million to HKD 14.7 million for the six months ended September 30, 2020[15]. - Revenue from financial printing services increased by approximately 2.2% from HKD 13.8 million to HKD 14.1 million for the same period[15]. - Total revenue from the printing business decreased by approximately 19.9% to HKD 29,300,000 from HKD 36,600,000 year-on-year[28]. - Revenue for the six months ended September 30, 2020, decreased by approximately 13.1% to HKD 7,300,000 from HKD 8,400,000 for the same period in 2019[42]. - The company's revenue for the six months ended September 30, 2020, was HKD 12,533,000, a decrease of 22.5% compared to HKD 16,132,000 for the same period in 2019[104]. - The printing business generated revenue of HKD 29,312,000, while the electric vehicle charging business contributed HKD 71,000, resulting in a total revenue of HKD 29,383,000[152]. Electric Vehicle Charging Business - The acquisition of Cornerstone Electric Vehicle Charging was completed on August 4, 2020, making it a wholly-owned subsidiary and its financial performance is consolidated into the group's results[12]. - Cornerstone Electric Vehicle Charging is recognized as a licensed electric vehicle charger supplier by a prestigious Japanese automobile manufacturer, affirming the quality of its products[18]. - The company focuses on developing comprehensive charging solutions for electric vehicles, including central management systems and electronic payment integration systems[18]. - Revenue from the electric vehicle charging business was approximately HKD 71,000, contributing about 0.2% to the group's total revenue[19]. - The company aims to support at least 3,000 private parking spaces with its electric vehicle charging solutions before the end of the EV charging subsidy program[22]. - The company is focused on expanding its electric vehicle charging services and developing various payment systems for major parking lots[101]. Financial Performance and Losses - The total loss attributable to owners for the six months ended September 30, 2020, was approximately HKD 12,300,000, compared to HKD 4,200,000 for the same period in 2019[51]. - The group reported a total segment loss of HKD 12,331,000 for the six months ended September 30, 2020, compared to a loss of HKD 4,159,000 for the same period in 2019[152]. - The company reported a loss before tax of HKD 7,493,000, which is a significant increase from a loss of HKD 3,641,000 in the prior year[104]. - Total comprehensive loss for the period was HKD 7,001,000, compared to a loss of HKD 3,240,000 in the same period last year[106]. - Basic and diluted loss per share was HKD 1.50, compared to HKD 0.75 for the same period in 2019[106]. Costs and Expenses - The service cost for the printing services decreased by approximately 25.9% to HKD 20,900,000 from HKD 28,200,000 year-on-year[36]. - Selling expenses decreased by approximately 30.4% to HKD 1,600,000 from HKD 2,300,000 for the six months ended September 30, 2020[44]. - Administrative and other operating expenses increased by approximately 81.5% to HKD 19,600,000 from HKD 10,800,000 for the six months ended September 30, 2020[46]. - Employee costs, including directors' remuneration, totaled HKD 15,362,000 for the six months ended September 30, 2020, a decrease from HKD 18,788,000 for the same period in 2019[162]. Assets and Liabilities - As of September 30, 2020, total borrowings amounted to approximately HKD 38,700,000, an increase from HKD 35,900,000 as of March 31, 2020[53]. - Total assets as of September 30, 2020, amounted to HKD 139,828,000, an increase from HKD 126,696,000 as of March 31, 2020[155]. - Total liabilities increased to HKD 58,232,000 as of September 30, 2020, compared to HKD 51,620,000 as of March 31, 2020[155]. - The non-current liabilities due after 12 months were HKD 21,595,000, down from HKD 25,747,000[188]. Cash Flow and Liquidity - The company reported a net decrease in cash and cash equivalents of HKD 22,473,000, compared to a decrease of HKD 2,370,000 in the same period last year[115]. - The cash and cash equivalents at the end of the period were HKD 26,293,000, down from HKD 59,775,000 in 2019, indicating a significant liquidity contraction[115]. - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 997,000, a decrease of 81.12% compared to HKD 5,297,000 in 2019[115]. - Cash used in investing activities amounted to HKD 17,496,000, an increase of 194.66% from HKD 5,967,000 in the previous year, primarily due to the acquisition of subsidiaries[115]. Corporate Governance and Ownership - The company has adhered to all applicable corporate governance code provisions as of September 30, 2020[76]. - The board consists of experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[76]. - The company has established a non-competition agreement with major shareholders, ensuring no engagement in competitive businesses[96]. - The company has a significant ownership concentration, with the top three shareholders collectively holding 88.23% of the issued share capital[91]. Strategic Plans and Future Outlook - The company plans to explore sustainable new business opportunities due to uncertainties in the financial printing industry[21]. - The company is actively exploring strategic options for potential mergers and acquisitions to enhance its market position[114]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[114].

| --- | --- | |----------------------------------------------------------|------------------------------| | Elegance Commercial and Financial Printing Group Limited | | | | | | | 精雅商業財經印刷集團有限公司 | | | | First Quarterly Report 2020/2021 Elegance Commercial and Financial Printing Group Limited 精雅商業財經印刷集團有限公司 （於開曼群島註冊成立之有限公司） 股份代號：8391 第一季度報告 2020/2021 MIX F FSC FSC" C007234 www.lsc.org 香港聯合交易所有限公司（「聯交所」）GEM 的特色 二零二零年╱二零二一年第一季度報告 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並 應經過審 ...